Kellogg's Marketing Strategies in the UK Market: A Detailed Report

This report provides a comprehensive analysis of Kellogg's marketing strategies in the UK market. It begins with an executive summary and then delves into the company's marketing strategies concerning its operating environment, including both micro and macro environmental factors. The report u...Read More

Strategic Marketing

EXECUTIVE SUMMARY
Kellogg is a multinational food company manufacturing its products in 18 countries. It is
renowned for providing breakfast cereals for different segments of the society. The company
ensures that each brand has its unique place in the minds of the customers. UK is considered as
its potential market because of the current trend for health consciousness among the individuals.
It makes influential use of its marketing strategies to attain the organizational goals signifying
profit maximization. It is found by the report that Kellogg makes use of different marketing
strategies in order to acquire got hold over targeted clients. The report highlights various direct
and indirect competitors of Kellogg and their product portfolios that effect its market share. The
strengthens and weakness of its prominent competitors is described to understand their influence
in the cereal industry of UK. Also, the company in order to resist its brand image in the market,
adopts integrated marketing model to ensure its competitiveness in the market.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Kellogg marketing strategies regarding the company's operating environment..........................1
Micro Environment............................................................................................................1
Macro Environment...........................................................................................................2
TASK 2............................................................................................................................................4
Analyzing main competitors of Kellogg in the UK market.........................................................4
TASK 3............................................................................................................................................6
Use of appropriate marketing models to evaluate possible responses to Kellogg marketing
campaign......................................................................................................................................6
CONCLUSION................................................................................................................................8
REFRENCES.................................................................................................................................10

INTRODUCTION
Marketing strategy is a concept that focuses on increasing sales of an organization and achieving
sustainable competitive advantage. Companies adopt the policies and strategies that differentiate
its products from its competitors. It also lays interest in providing value based services to its
target based customers. These short and long term strategies deal with the analysis of the initial
condition of the firm and evaluation of market-oriented policies (Luo and Bhattacharya, 2009).
Kellogg is the world leading supplier of breakfast cereals, a multinational food manufacturing
company. It provides products that nourish families with healthy morning diet, so they flourish
and thrive whole day. The assignment evaluates Kellogg success achieved through effective
marketing strategies carefully planned and executed in the market. The company manufactures
the wide range of products for various segments of UK's market, attracting a large number of
consumers and achieving its organizational goals.
TASK 1
Kellogg marketing strategies regarding the company's operating environment
To understand and plan important marketing strategies the marketing manager first studies the
operating environment of the company. There are various factors and forces that affect the
functioning of a firm to attain its goals and objectives. Kellogg market environment can be
classified into two major levels: micro (internal) and the macro (external) environment.
Micro Environment
This structure is made up of forces that are close to the company and have a day-to-day
impact on its working. The micro environment of the company consists of those elements which
are controllable by the managerial staff (Seelos and Mair, 2007).
1
Illustration 1: Micro environment of Kellogg

 The company: Kellogg organizational structure and culture is dynamic and flexible
which enhance the characteristic of adjusting according to change. The sales and
marketing managers execute plans and policies with the current trends and future
upcoming events. Suppliers: This element includes both the individual and business houses. The company
always searches for potential suppliers who offer a good combination of quality raw
material, credit warranties, delivery reliability, on-time service and low cost (Shilbury,
Quick and Funk, 2009). Marketing intermediaries: Wholesalers, retailers, distributing agencies, financial
institutions, and agents represent marketing intermediaries of Kellogg. The channel of
distribution plays a crucial part in promoting, selling and arranging goods for the targeted
customers (Wilson and Gilligan, 2012). Customers: Every business operates to satisfy needs of its targeted audience. UK market
provides clients and customers to Kellogg in bulk, and the company is responsible for
taking steps in the direction of satisfying their demands. Competitors: Company faces strong competition from Weetabix, Nestle, Post, Kraft and
Unilever as food manufacturing company (Grinstein, 2008). The managerial and
production staff focuses on producing value-oriented goods along with preparing such
business strategies that clients are more attracted and attached to the company.
 Public: The company also has the duty towards the society to fulfill its needs and
demands. The overall success of Kellogg is affected by the subject matter on how society
accepts its existence. Branded reputation and goodwill in society is a favorable signal for
the company.
Macro Environment
External elements that have an indirect influence on the company's proceedings and
significantly impact its performance is recognized as its macro environment. It includes factors
such as political scenario of the country, its economic polices, social and cultural traditions,
technological enhancement and ecological conditions (Aaker, 2008). The following table
represents the PESTLE Analysis of Kellogg to understand its macro environment:
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Political
Factors
Economic
Factors
Social Factors Technological
Factors
Environmenta
l Factor
Legal Factor
It includes the
government
policies
related to
taxation,
foreign policy,
labor laws,
and trade
restriction that
effect
functioning of
the company.
Political
stability in UK
market creates
a beneficial
situation for
the business
entity.
Business
profitability
depends upon
economic
factors like
exchange
rates, interest
rates, inflation,
the disposable
income of
consumers,
their
purchasing
powers and
country's
economic
growth.
Socio-cultural
factors are
taken into
consideration
by the
company to
understand the
habits,
tradition and
culture of the
targeted
market.
Kellogg
studies the
population
growth, health
consciousness,
the age
distribution of
UK market.
In the modern
world, new
technical
developments
and
advancement
are adopted by
the companies
to resist in the
market.
Innovative and
scientific
methods of
producing,
distributing
and promoting
products are
performed by
Kellogg
marketing and
production
departments.
The ecological
and
environmental
aspects play a
crucial role in
understanding
the external
environment
of the
company.
Global
warming and
pollution are
the main
concern of
business entity
while
manufacturing
its goods and
services in UK
market.
The company
needs to
understand
laws and
guidelines
related to
health and
safety
measures,
employment
laws and
consumer
rights
prevailing in
the society. As
it will
influence its
operations,
costs, and even
its demand.
Kellogg is leading cereal brand in UK market by providing wide range and flavors of
snacks and corn flakes. The management makes efficient use of marketing strategies in
promoting and advertising various brands. Recently, the company has introduced a product
Kellogg Special K that is developed special y for the women segment of market. It consists of
essential nutrients like vitamins A, C and B to enrich the resistance power of body. This
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crunchier flakes helps women consumer to loss their weight within a precised period. Marketing
team has promoted this feature by giving 28 days challenge reducing the weight by three kg s.
Apart from this another potential segment of customers for the leading organization is kids and
youngsters. It specially offers yummy chocolate flavor cornflakes product called as Kellogg
Chocos. It applies the theory that it is a great breakfast for both mom and kid. Mothers are
benefited and feel relieved by offering their child whole grain comprising necessary vitamins,
minerals and fibers. Tiddlers are fascinated by chocolate flavor along with various toys and
games offered free of cost by the company. This is a kind of marketing strategy performed to
retain existing buyers and attracting new consumers.
Marketing department also enhances other products according to the taste and
preferences of current market. As it is food manufacturing entity there are many scopes to
explore apart from cereal-based items. Therefore, to explore and expand its market utility food
products such as mini wheat's, fruity snacks, crunch mania and crunchy nuts are also produced
by Kellogg. It also manufactures biscuits and great tasting cereal and snack bars that are
promoted as traveling snacks for the consumers. All these food products are introduced and
advertise to make consumers aware about its innovations and experiments. Therefore, proper
skilled marketing strategies are applied by the management.
TASK 2
Analyzing main competitors of Kellogg in the UK market
The cereal industry of UK is highly competitive in nature as numerous business entities are
competing with effective production techniques and marketing strategies. Recently, the industry
4
Illustration 2: Main competitors of Kellogg

is greatly influenced by the change in the behavior of UK clients. They have become much more
health conscious as a result companies are introducing new products and modifying the existing
one to increase their sales and market share.
Direct Competitors of the company and their product portfolio:
Kellogg is one of the global brand existing in the cereal industry. Although with the entry
of some efficient rivalries it has started reducing the market share in the UK (Laforet, 2008).
Nestle is considered as the strong opponent of the company because of its brand value
established for a long time. While General Mills and Kraft poses the great threat to the company
by its kids-oriented cereal products. Both these companies provide strong competition to Kellogg
in context of kids segments. General Mills food products specially fruit snaks like fruit grushers,
fruit roll-ups, fiber one bars grabs great proportion of kids segment. Post also hold good amount
of proportion in UK's hot breakfast cereal market, availing their products at very reasonable
price.
Indirect competitors of the company and their product portfolio:
Company also faces high competition from international food manufacturing units like
Nestle and Unilever indirectly. They are considered as its indirect rivalries, extensive range of
breakfast items, ice creams and beverages exerts good amount of clients. While, Nestle is
renowned for its milk and frozen foods based products. Presence of such strong competitors
holds the vast amount of market share in the UK. They organize various campaigns including
health checkups as marketing initiatives to attract the good amount of health conscious people.
They have strong brand recognition in the market due to which Kellogg requires extensive
market research and its brand extensions. But the rival companies do have some weaknesses and
limitations that can benefit the company. Few of them provide goods at a very high price with
similar ingredients which shifts the interest of existing customers to Kellogg products (Chen,
Ganesan and Liu, 2009). Also, not many efforts have been performed to expand the product line
for the variety of healthier convenience snacks. Also, sometimes introduction of the new product
by Kellogg makes an adverse impact on the selling and market share of the existing goods of the
same company.
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TASK 3
Use of appropriate marketing models to evaluate possible responses to Kellogg marketing
campaign
There are various marketing models present in the market to promote and communicate
to the customers and clients. Kellogg uses integrated marketing model to advertise through
multiple media for its specific target audience.
Integrated marketing model acts as a complete package to the promotional and marketing
techniques of Kellogg. It is the combination of traditional media and digital media to enforce the
marketing strategies. Traditional media: According to the traditional approach, use of newspaper, magazines,
advertising hoardings and so on are used by the company to reach the remote area of
population. The personal representatives of the corporation also play vital role in
developing strong public relations with the existing and new customers in the market. In-
store techniques like product training with its purchase, making discounts available in
the market or organizing interactive contests also helps to attract the good amount of
clients to the company. Online media: Marketing representatives of the company are making use of modern
times social media technology as its marketing strategies (Hopklns, 2013). Direct
mailing the targeted audience about campaigns and events, posting updates on social
6
Illustration 3: Kellogg integrated
marketing model

networking sites like Facebook, Twitter and developing attractive official website builts
worthiness in the minds of clients. Personal representatives:While Kellogg using integrated marketing techniques, its
competitors can make improvements their own strategies. More focus should be laid on
building strong public relation through identifying the target market. Organizing
seminars, programs, campaigns for them. This will help them to gather their clients from
grass root area. Social networks:The remote or underdeveloped areas should be targeted through street
plays describing the importance of healthy diet in their life which can be acquired
through their products. Also, they can make use of promotional clothing like T-shirts,
bags, etc. to attract the young generation of UK market. Kellogg makes constant use of
social media sites like Facebook and Twitter to connect widely to the huge amount of
population (Shank and Lyberger, 2014). Therefore, the other rivalry companies can
make use of Link din or other business organizations social groups over the internet to
connect with the targeted group.
 Partnerships: Another element of this marketing model is to invite and get enrolled with
small and medium enterprises in Kellogg entity. Partnership expands the horizons and
scope for the company. It also provides competitive advantage as the emerging rivalries
are incorporated in Kellogg wide range of food products. New ideas and innovations
improve marketing procedures and better results are gained.
As the company has already made various efforts to increase its sales and market share. Still, it
requires measures to improve its marketing skills by penetrating UK market with the
introduction of new product line. It can experiment with different flavors and attractive
packaging skills. Kids segment can be considered as the potential market for the companies to
introduce cereal in strawberry and chocolate flavors (Zott and Amit, 2008). Another method to
regulate better marketing plans will be to stay in touch with the customer continuously. Adopt
methods which provide customers feed backs on the different aspects of manufacturing,
packaging and promoting its products. Seasonal offers or gift vouchers on special occasions can
be another marketing tool adopted by the company (Roger, 2010). Providing sample packets to
the customers of new products through sales representatives will widespread the idea to try the
product once.
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CONCLUSION
The above report signifies the impact of marketing strategies on one of the leading brand
of cereal industry, i.e., Kellogg. The macro and micro environment of the company is dynamic
and flexible. The marketing and sales executives analyzes and studies its external and internal
factors to satisfy their needs and demands accordingly. Nestle, Post, Unilever, and Kraft are its
major competitors that engross large profit share of the industry. Therefore, the company makes
use of integrated marketing model to stand firmly in UK's market. The business entity has
established the strong brand image in the market and by upgrading its marketing strategies, it can
acquire the large part of market share.
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REFRENCES
Books and Journals
Aaker, D.A., 2008. Strategic market management. John Wiley & Sons.
Chen, Y., Ganesan, S. and Liu, Y., 2009. Does a firm's product-recall strategy affect its financial
value? An examination of strategic alternatives during product-harm crises. Journal of
Marketing. 73(6). pp.214-226.
Grinstein, A., 2008. The relationships between market orientation and alternative strategic
orientations: A meta-analysis. European Journal of marketing. 42(1/2), pp.115-134.
Laforet, S., 2008. Size, strategic, and market orientation affects on innovation. Journal of
business Research. 61(7). pp.753-764.
Luo, X. and Bhattacharya, C.B., 2009. The debate over doing good: Corporate social
performance, strategic marketing levers, and firm-idiosyncratic risk. Journal of
Marketing. 73(6). pp.198-213.
Roger, K., 2010. Strategic Marketing Problems: Cases And Comments, 12/E. Pearson Education
India.
Seelos, C. and Mair, J., 2007. Profitable business models and market creation in the context of
deep poverty: A strategic view. The academy of management perspectives. 21(4). pp.49-
63.
Shank, M.D. and Lyberger, M.R., 2014. Sports marketing: A strategic perspective. Routledge.
Shilbury, D., Quick, S. and Funk, D., 2009. Strategic sport marketing. Allen & Unwin.
Wilson, R.M. and Gilligan, C., 2012. Strategic marketing management. Routledge.
Zott, C. and Amit, R., 2008. The fit between product market strategy and business model:
implications for firm performance. Strategic management journal. 29(1). pp.1-26.
Hopklns, T., 2013. Strengthening The Tide, Shaping the Minds of Current and Future Customer.
[PDF]. Available
through:<http://www.bluezz.bluezzoon.com/Bluezz/Download/Project/Benchmarks/
The_Book_Hopkins.pdf>. [Accessed on 29th February 2016].